INSUBCONTINENT EXCLUSIVE:
G CHOKKALINGAMMD, Equinomics Research AdvisoryI am holding Reliance Communications at Rs 11, Balrampur Chini at Rs 90, Everest Kanto
Cylinders at Rs 29 and Infibeam at Rs 30
Please advise on what I should do
between value of its worldwide assets and net liabilities
elections would be over and also sugar cycle is likely to turn positive
You may sell Everest Kanto Cylinders around Rs 35, which is a fair valuation considering its balance sheet status and performance of
form 80 per cent of total non-current assets
In other words, they are 11 times tangible assets
On the other hand, the company makes losses or minor profits, showing inability of these large intangible assets in contributing to the
profits in a significant manner.
I own J Kumar Infra stocks at Rs 245
crore while its total borrowings and current liabilities are nearly Rs 1,700 crore
Also, its inventories and receivables are stretched at around 62 per cent of annualised revenues
Hence, considering these facts of balance sheet and legacy issues, I am not confident of the stock reaching your cost price despite stock
trading at poor single digit PE
You may hold it and exit at around Rs 175.
I have shares of BEL at a cost price of Rs 115, Capital First at a cost price of Rs 700 and Birla
Corporation at cost price of Rs 750
sacrifice for the government orders
Considering the business order on hand to the tune of around Rs 49,000 crore, which is more than four times its annual turnover and cheap
valuation, please hold BEL till you get back at least your cost price
You may have to hold at least for another two years to get back your cost price in Capital First as its merger would maintain bloated equity
base, which , in my view, would delay the valuation upgrade
Though on PE basis, Birla Corp is valued costly, still you may hold it to get back your cost price considering cheap valuation of its
consolidated cement capacity as compared to its consolidated enterprise value.
I have Unitech shares purchased at Rs 25
The rate is not even reaching Rs 5
at over Rs 11,000 crore while annualised revenue is less than Rs 400 crore
Net loss is more than revenue in the first half of current fiscal
Still having lost around 92 per cent of your capital, you may wait for any possible upswing in this penny stock to reduce your loss.
I hold
shares of Indian Metals Ferro Alloys at an average rate of Rs 400
Automation for a period of 10 to 20 years
consistent growth in profits over the last five years
However, right now it trades at over 50 PE on current year and hence, you may buy preferably below Rs 20,000.
I hold Apollo Tyre at Rs 252,
Mangalam Drugs at Rs 82, NCL Industries at Rs 144
What is your outlook and when to sell these sharesAlthough automobile sales have moderated, over 33 per cent crash in oil prices and around
12 per cent fall in the domestic natural rubber prices from their respective recent record highs are positive for the tyre industry
Hence, please hold it with a target price of around Rs 265
You may hold Mangalam Drugs with a target price of around Rs 100 as its EPS may improve significantly over Rs 10 in the next financial year
Sell NCL Industries around your cost price as its valuation is quite stretched in the short term due to steep fall in the profitability of
its cement division.
I am holding 8K Miles Software
What is your outlook Please also advise on whether to hold Quick Heal Technologies
For FY17 also it paid a poor dividend of just Rs 1 when its consolidated EPS was Rs 34
In the previous years also, the company skipped the dividends despite reporting solid growth in profits over the years
Further, its fixed tangible asset is less than 2 per cent of its total assets
However, its fixed intangible assets (assets, which cannot be seen in eYES) and Receivable together consume 77 per cent of total capital
Hence, exit the stock whenever current rally in the price shows sign of fizzling out
holding shares of Nitin Fire Protection Industry at average price of Rs 16.15
Please advise if I should hold or sell
I am a long time investor
exceed total assets by over Rs 231 crore.
I recently bought YES Bank shares at Rs 185, Tata Motors at Rs 175 and Jet Airways at Rs 200
In my view, over 50 per cent growth in business, still net NPA being one of the lowest in the industry and possible resolution to the CEO
issue in this month would enable this bank consequently to successfully come out of current adverse perceptions
Sell Tata Motors if it moves close to Rs 200 as I believe the JLR business would continue to face major headwinds in the short to medium
industry may possibly enable it to find a partner with sound financial status.
Please send your queries on Stocks to
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